Department of Education Funding: Key Concepts and FAQ
Congressional research reportFeb 19, 2019
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Department of Education Funding:
Key Concepts and FAQ
Kyle D. Shohfi
Analyst in Education Policy
Jessica Tollestrup
Specialist in Social Policy
Updated February 19, 2019
Congressional Research Service
7-....
www.crs.gov
R44477
Department of Education Funding: Key Concepts and FAQ
Summary
Like most federal agencies, the Department of Education (ED) receives funds in support of its
mission through various federal budget and appropriations processes. While not unique, the
mechanisms by which ED receives, obligates, and expends funds can be complex. For example,
ED receives both mandatory and discretionary appropriations; ED is annually provided forward
funds and advance appropriations for some—but not all—discretionary programs; ED awards
both formula and competitive grants; and a portion of ED’s budget subsidizes student loan costs
(direct loans and loan guarantees). As such, analyzing ED’s budget requires an understanding of a
broad range of federal budget and appropriations concepts. This report provides an introduction to
these concepts as they are used specifically in the context of the congressional appropriations
process for ED.
The first section of this report provides an introduction to key terms and concepts in the federal
budget and appropriations process for ED. In addition to those mentioned above, the report
includes explanations of terms and concepts such as authorizations versus appropriations;
budgetary allocations, discretionary spending caps, and sequestration; transfers and
reprogramming; and matching requirements.
The second section answers frequently asked questions about federal funding for ED or education
in general. These are as follows:
How much funding does ED receive annually?
How much does the federal government spend on education?
Where can information be found about the President’s budget request and
congressional appropriations for ED?
How much ED funding is in the congressional budget resolution?
What is the difference between the amounts in appropriations bills and report
language?
What happens to education funding if annual appropriations are not enacted
before the start of the federal fiscal year?
What happens if an ED program authorization “expires”?
The third section includes a brief description of, and links to, reports and documents that provide
more information about budget and appropriations concepts.
Congressional Research Service
Contents
Introduction ..................................................................................................................................... 1
Key Concepts and Terms ................................................................................................................. 1
Budget Authority, Obligation, Outlay, and Rescission .............................................................. 1
Authorizations and Appropriations ........................................................................................... 3
“Authorization of Appropriations” ............................................................................................ 5
Discretionary and Mandatory Spending (Including Appropriated Mandatory
Spending) ............................................................................................................................... 6
302(a) and 302(b) Allocations ................................................................................................... 7
Fiscal Year, Award Year, and Other Units of Time .................................................................... 8
“Carry Forward,” Advance Appropriations, and Forward Funding .......................................... 9
Budget Caps and Sequestration ............................................................................................... 10
Discretionary Spending Limits .......................................................................................... 11
Mandatory Spending Sequestration .................................................................................. 12
The BCA and ED Funding ................................................................................................ 12
Transfer and Reprogramming ................................................................................................. 13
Formula and Competitive Grants ............................................................................................ 14
Block and Categorical Grants ................................................................................................. 14
Matching Funds or Requirements ........................................................................................... 15
Frequently Asked Questions .......................................................................................................... 15
How much funding does the Department of Education receive annually? ............................. 15
How much does the federal government spend on education? ............................................... 16
Where can information be found about the President’s budget request and
congressional appropriations for the Department of Education? ......................................... 17
How much ED funding is in the congressional budget resolution? ........................................ 17
What is the difference between the amounts in appropriations bills and report
language? ............................................................................................................................. 18
What happens to education funding if annual appropriations are not enacted before
the start of the federal fiscal year? ....................................................................................... 19
What happens if an ED program authorization “expires”? ..................................................... 19
For More Information .................................................................................................................... 20
Figures
Figure 1. Start of Period of Availability ........................................................................................ 10
Tables
Table 1. Discretionary, Mandatory, and Total ED Appropriations: FY2015 to FY2019 ............... 16
Contacts
Author Contact Information .......................................................................................................... 20
Acknowledgments ......................................................................................................................... 20
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Department of Education Funding: Key Concepts and FAQ
Introduction
Federal policymakers statutorily established the U.S. Department of Education (ED) as a Cabinetlevel agency in 1980.1 Its mission is to “promote student achievement and preparation for global
competitiveness by fostering educational excellence and ensuring equal access.”2
Like most federal agencies, ED receives funds in support of its mission through various federal
budget and appropriations processes. These processes are complex. For example, ED receives
both mandatory and discretionary appropriations; ED is annually provided forward funds and
advance appropriations for some—but not all—discretionary programs; ED awards both formula
and competitive grants; and a portion of ED’s budget subsidizes student loan costs (through both
direct loans and loan guarantees).
Because of this complexity, analyzing ED’s budget requires an understanding of a broad range of
federal budget and appropriations concepts. This report provides an introduction to these concepts
as they are used specifically in the context of the congressional appropriations process for ED. It
was designed for readers who are new or returning to the topic of ED budget and appropriations.
The first section of this report provides an introduction to key terms and concepts in the federal
budget and appropriations process with special relevance for ED. The second section answers
frequently asked questions (FAQs) about federal funding for the department, as well as closely
related questions about education funding in general. The third section includes a brief
description of, and links to, reports and documents that provide more information about budget
and appropriations concepts.
The scope of this report is generally (but not exclusively) limited to concepts associated with
funding provided to ED through the annual appropriations process. It does not address all
possible sources of federal funding for education, training, or related activities. For example, it
does not seek to address education tax credits, student loans, or education and training programs
at agencies other than ED.3 Where this report does address such topics, it does so in order to
provide broad context for questions and key terms related to the appropriations process for ED.
This report also addresses some frequently asked questions about education funding in general.
Key Concepts and Terms
The following section provides an introduction to selected key terms and concepts used in the
congressional debate about federal funding for ED.
Budget Authority, Obligation, Outlay, and Rescission
In the federal budget process, the concept of spending is broken down into three related but
distinct phases—budget authority, obligation, and outlay. Budget authority is the authority
provided by federal law to enter into financial obligations that will result in immediate or future
expenditures (or outlays) involving federal government funds. For reasons that are explained
1 P.L. 96-88.
2 U.S. Department of Education, “About ED,” http://www2.ed.gov/about/landing.jhtml, accessed December 28, 2018.
3 Such funds are not typically included in the annual discretionary appropriations act for ED, which is the primary focus
of this report. Congressional readers seeking such information are referred to the many publications on these topics at
http://www.crs.gov.
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Department of Education Funding: Key Concepts and FAQ
below, the amounts of budget authority, obligations, and outlays in a fiscal year are rarely the
same for a budget account (or activity in that account). For example, ED’s Education for the
Disadvantaged account4 in FY2017 had $16.805 billion in total budget authority.5 That is, ED had
legal authority to spend up to $16.805 billion in federal funds for the purposes associated with
this account (which consists primarily of grants allocated to local educational agencies).6 During
that same fiscal year, ED newly obligated (i.e., committed to spend) $16.789 billion of that
available budget authority. Total outlays during FY2017 in the Education for the Disadvantaged
account were $16.237 billion.7
Budget authority can only be provided through the enactment of law, and generally its amount,
purpose, and the time period in which it may be used is specified. Budget authority may be for a
broad set of purposes (e.g., improving the academic achievement of disadvantaged children) or
for a particular purpose (e.g., obtaining annually updated local educational agency-level census
poverty data from the Bureau of the Census). The amount of the budget authority is usually
defined in specific terms (e.g., $10 billion) but sometimes is indefinite (e.g., “such sums as may
be necessary”). The time element of budget authority provides a deadline as to when the funds
must be obligated—one fiscal year, multiple fiscal years, or without fiscal year restriction
(referred to as “no year” budget authority).
Once an agency receives its budget authority, it may take actions to obligate it legally, for
example, by signing contracts or grant agreements. Over the course of a fiscal year, an agency
may obligate budget authority that was first provided during that year or was provided in a prior
fiscal year with a multiyear or no-year period of availability. Generally, all obligations must occur
prior to the deadline associated with the budget authority. It is not until those obligations are due
to be paid (i.e., become outlays) that federal funds from the Treasury are used to make the
payments.
In addition to the amount of budget authority that is available to be obligated, the primary factor
that affects the total amount of obligations in a fiscal year is when they are due. For example,
outlays to pay salaries usually occur over the course of the year that the budget authority is made
available because those payments must occur regularly (e.g., every two weeks). In contrast,
outlays for a construction project may be structured to occur over several years as various stages
of the project are completed. Outlays are reported in the fiscal year in which they occur, even
those outlays that result from budget authority that first became available in previous fiscal years.
Budget authority that reaches the end of its period of availability is considered to have “expired.”
At this point, no new obligations may be incurred, although outlays to liquidate existing
obligations are generally allowable, usually up to five fiscal years after the budget authority
expired. Once that liquidation period has ended, it is generally the case that no further outlays
4 An account is a separate financial reporting unit for budget, management, and/or accounting purposes. For more
information on accounts, see U.S. Government Accountability Office, A Glossary of Terms Used in the Federal Budget
Process, GAO-05-734SP, September 1, 2005, http://www.gao.gov/products/GAO-05-734SP.
5 Consisting of $660 million in unobligated balances brought forward, $10.841 billion in advance appropriations from
FY2016, and $5.303 billion in current-year (FY2017) appropriations. See Executive Office of the President, Office of
Management and Budget, “Department of Education,” The Appendix: Budget of the United States Government, Fiscal
Year 2019, https://www.govinfo.gov/content/pkg/BUDGET-2019-APP/pdf/BUDGET-2019-APP-1-9.pdf.
6 This account includes programs such as Elementary and Secondary Education Act (ESEA) Title I-A Grants to Local
Educational Agencies, School Improvement Grants, and Migrant Education Program grants.
7 Executive Office of the President, Office of Management and Budget, “Department of Education, “ The Appendix:
Budget of the United States Government, Fiscal Year 2019, p. 333, https://www.govinfo.gov/content/pkg/BUDGET2019-APP/pdf/BUDGET-2019-APP-1-9.pdf.
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Department of Education Funding: Key Concepts and FAQ
may occur and the agency is to take administrative steps to cancel any remaining budget
authority.8
Rescissions are generally provisions of law that repeal unobligated budget authority prior to its
expiration. Such provisions may be used to eliminate budget authority for purposes that are
considered to be outdated or no longer desirable. Rescissions also may be used to offset increases
in budget authority for higher-priority activities.
Authorizations and Appropriations
The congressional budget process generally distinguishes between two types of measures—
authorizations, which create or modify federal government programs or activities, and
appropriations, which fund those activities. The provisions within authorization measures may be
further distinguished as either enabling or organic provisions (e.g., statutory language or acts that
authorize certain programs, policies, or activities) or express authorizations of appropriations
provisions (e.g., statutory language or acts that recommend a future funding level for authorized
programs, policies, or activities). These distinctions between authorizations and appropriations,
and between the types of authorization provisions, are important for understanding why programs
with “expired” authorizations can continue to function. This section focuses on the distinction
between appropriations and enabling or organic authorizations; the section titled “Authorization
of Appropriations” addresses the authorization of funding levels.9
Enabling or organic authorizations may be
Authorizations and Appropriations
generally described as statutory provisions that
Authorization provisions generally come in two types:
define the authority of the government to act.
(1) Provisions that define the authority of the
These acts establish, alter, or terminate federal
government to act, by establishing, altering, or
agencies, programs, policies, and activities.
terminating authorities, are referred to as “enabling”
For example, the Economic Opportunity Act of or “organic” authorizations; (2) “Authorizations of
appropriations” essentially recommend a funding level
1964 (P.L. 88-452) contained statutory
for a program or agency in a given fiscal year but do
provisions that established the Federal Worknot themselves provide that funding.
Study (FWS) program. The Higher Education
Appropriations provisions provide funding for federal
Opportunity Act of 2008 (HEOA, P.L. 110agencies to carry out certain purposes that are usually
315) contained statutory provisions that altered specified in authorization acts.
and continued (e.g., “reauthorized”) FWS.
Authorization measures may also address
organizational and administrative matters, such as the number or composition of offices within a
department. Authorization measures are under the jurisdiction of legislative committees, such as
the House Committee on Education and Labor and the Senate Committee on Health, Education,
Labor and Pensions.
Authorizations may be permanent or limited-term. Permanent authorizations remain in place until
Congress and the President enact a law or laws to amend or repeal the authorization. Most ED
authorizations are permanent. For example, Title I-A of the Elementary and Secondary Education
Act of 1965, as amended and reauthorized by the Every Student Succeeds Act (ESSA, P.L. 11495), gives ED the authority to provide aid to local educational agencies (LEAs) for the education
8 31 U.S.C. §1552(a). For a detailed discussion of these general principles, see GAO, Principles of Appropriations Law,
3rd Ed., pp. 5-71 to 5-75, http://www.gao.gov/assets/210/202437.pdf.
9 More information about the distinction between types of authorizations, and between authorizations and
appropriations, is available in U.S. Government Accountability Office, “Chapter 2: The Legal Framework,” Principles
of Federal Appropriations Law, GAO-16-464SP, 4th ed., 2016 Revision, pp. 2-54 – 2-56, at http://www.gao.gov/legal/
redbook/redbook.html. See also the section entitled, “What happens if an ED program authorization “expires”?”
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Department of Education Funding: Key Concepts and FAQ
of disadvantaged children. In general, unless Congress and the President enacted legislation to
repeal provisions of Title I-A, ED may distribute any budget authority it receives for such aid in
accordance with the program parameters defined in such statutory language.
Limited-term authorizations end after a specified period of time, typically without requiring
further legislative action. (These are sometimes called sunset provisions.) For example, the statute
authorizing the Advisory Committee for Student Financial Assistance (ACSFA, 20 U.S.C.
1098(k)) specifies that ACSFA was authorized from the date of enactment until October 1, 2015.
At that point, ACSFA was disbanded. The authorizations for some programs are intended to
receive legislative action on a regular basis, as the authorities for those programs expire, while
others are expected to receive legislative action as needed and not on a regular schedule.
Appropriations measures, on the other hand, are typically enacted annually and provide new
budget authority for agencies, programs, policies, and activities that are already authorized and
are under the jurisdiction of the House Appropriations Committee and the Senate Appropriations
Committee.10 That is, appropriations give federal agencies the authority to use a certain amount of
federal funds for program purposes that are usually specified in authorization acts. For example,
the Department of Defense and Labor, Health and Human Services, and Education
Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115-245) appropriated
$71.4 billion in discretionary budget authority to ED, of which $22.5 billion was specifically for
the Pell Grant program.11
Budget authority that is provided in appropriations measures may be available for a single fiscal
year, multiple fiscal years (or portions thereof), or an indefinite period of time. For example, P.L.
115-245 provided budget authority that was available for one year for ED’s Indian Education
account, a year-and-a-quarter for Special Education, and two years for Impact Aid.
In general, during a calendar year Congress may consider the following:
12 regular appropriations bills for the fiscal year that begins on October 1 (often
referred to as the budget year) to provide the annual funding for the agencies,
projects, and activities funded therein;12
one or more continuing resolutions for that same fiscal year, to provide
temporary funding if all 12 regular appropriations bills are not enacted by the
start of the fiscal year; and
one or more supplemental appropriations measures for the current fiscal year, to
provide additional funding for selected activities over and above the amount
provided through annual or continuing appropriations.13
Congress typically includes most regular annual ED appropriations in the Departments of Labor,
Health and Human Services, and Education, and Related Agencies appropriations bill.
10 In certain instances, federal programs can receive appropriations through their authorizing acts instead of (or in
addition to) the budget authority they receive through annual appropriations acts. This process is described more fully
in the section on “Discretionary and Mandatory Spending (Including Appropriated Mandatory Spending).”
11 The department also receives budget authority through other provisions of law. This amount represents only the
amount it received through the annual regular appropriations process. See section on “Discretionary and Mandatory
Spending (Including Appropriated Mandatory Spending)” for more information on this distinction.
12 In some years, Congress combines two or more of these bills into what may be referred to as an “omnibus” or
“consolidated” appropriations act.
13 In general, supplemental funding may be provided to address cases where resources provided through the annual
appropriations process are determined to be inadequate or not timely.
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“Authorization of Appropriations”
In addition to enabling or organic authorizations that establish the authority for federal
government activities and appropriations that provide the authority to actually expend federal
funds on those activities, laws may include provisions that provide an explicit authorization of
appropriations.
An authorization of appropriations (or,
alternatively, appropriations authorization) is a
provision of law that essentially recommends a
funding level for a program or agency in a
given fiscal year. Appropriations
authorizations may include a range of fiscal
years and a specific funding level for each
fiscal year within that range (e.g., $10 million
in FY2007, $12 million in FY2008, etc.); may
be indefinite (e.g., “such sums as may be
necessary”); or may not be provided at all. For
example, Section 1002 of the Elementary and
Secondary Education Act of 1965, as amended
and reauthorized by the Every Student
Succeeds Act (ESSA, P.L. 114-95), includes an
authorization of appropriations provision
effectively recommending a specific funding
level ($15.9 billion) for the Title I-A program
in a certain fiscal year (FY2019).
GEPA and Appropriations
Authorizations at ED
The General Education Provisions Act (GEPA), as
amended, contains a broad array of statutory
provisions that are applicable to the majority of federal
education programs administered by ED. One such
provision, Section 422, effectively adds one additional
fiscal year to most ED appropriations authorizations.
For example, if Congress does not enact legislation
extending the appropriations authorization of the Title
I-A program by FY2020 (the last fiscal year for which
the Elementary and Secondary Education Act (ESEA)
provides an appropriations authorization for this
program), then Section 422 of GEPA will authorize
appropriations for the Title I-A program for one
additional fiscal year (FY2021). The authorized Title IA funding level under the GEPA extension in FY2021
will be the same level as the final year authorized
under ESEA.
Contrary to common misconception, an authorization of appropriations does not convey actual
budget authority. Further, a lapse or gap in the fiscal years covered by an authorization of
appropriations (its “expiration”) does not usually affect the underlying organic authorization,
which provides authority to the federal government to engage in the programs or activities to
which the authorization of appropriations relates.14 If appropriations are provided for programs
with an expired authorization of appropriations, federal agencies generally would have sufficient
legal authority to implement and operate these programs. This is because an authorization of
appropriations is “basically a directive to Congress itself, which Congress is free to follow or alter
(up or down) in the subsequent appropriation act.”15
Authorizations of appropriations, however, are significant for the purposes of congressional rules.
House and Senate rules require that a purpose must have been “authorized” prior to when
discretionary appropriations are provided.16 While simply establishing an entity, program, or
14 There can be exceptions to this rule. For example, from September 30, 2015, to December 18, 2015, ED curtailed the
operations of the federal Perkins Loan program. ED took this step because the department considered the authorization
of appropriations provision under HEA Section 461(b)(1) to control the duration of the program. ED interpreted this
section, along with the automatic one-year extension under the General Education Provisions Act (GEPA) Section 422,
to mean that the Perkins Loan program was authorized through September 30, 2015. The program resumed after
Congress enacted the Federal Perkins Loan Program Extension Act of 2015 (the Extension Act; P.L. 114-105), which
extended ED’s authorization to make new Perkins Loans to eligible students through September 30, 2017. See CRS
Report R44343, The Federal Perkins Loan Program Extension Act of 2015: In Brief.
15 U.S. Government Accountability Office, “Chapter 2: The Legal Framework,” Principles of Federal Appropriations
Law, GAO-16-464SP, 4th ed., 2016 Revision, p. 2-56, at http://www.gao.gov/legal/redbook/redbook.html.
16 See the section on “Discretionary and Mandatory Spending (Including Appropriated Mandatory Spending)” for more
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Department of Education Funding: Key Concepts and FAQ
activity in law generally satisfies that authorization requirement, sometimes provisions are
enacted that explicitly authorize future appropriations (“authorizations of appropriations”). If the
period of time for which an authorization of appropriations has been provided lapses and is not
renewed—for example, at the start of FY2010, if the authorization of appropriations ended in
FY2009—then subsequent appropriations for those purposes are sometimes described as being
“unauthorized” from the perspective of House and Senate rules and could be subject to a point of
order during floor consideration.17 However, such points of order are frequently waived.
Discretionary and Mandatory Spending (Including Appropriated
Mandatory Spending)
There are two broad categories of budget authority in the federal budget and appropriations
process: discretionary spending and mandatory spending. ED receives both kinds of spending,
but there are important distinctions between them that are relevant to understanding both how ED
receives federal funding and how much it receives.
Discretionary spending is budget authority that is provided and controlled by appropriations acts.
This spending is for programs and activities that are authorized by law, but the amount of budget
authority for those programs and activities is determined through the annual appropriations
process. Even if a discretionary spending program has been authorized previously, Congress is
not required to provide appropriations for it or to provide appropriations at authorized levels. For
example, Section 399 of the Higher Education Act, as amended (HEA), authorized discretionary
appropriations of $75 million in FY2010 for the Predominantly Black Institutions (PBIs) program
authorized under HEA, Section 318. However, actual discretionary appropriations for the Section
318 PBI program in FY2010 were $10.8 million.
Mandatory spending is budget authority that is controlled by authorizing acts. Such spending
includes “entitlements,” which are programs that require payments to persons, state or local
governments, or other entities if those entities meet specific eligibility criteria established in the
authorizing law.18 This budget authority may be provided through a one-step process in which the
authorizing act sets the program parameters (usually eligibility criteria and a payment formula)
and provides the budget authority for that program. Such funding remains available automatically
each year for which it is provided, without the need for further legislative action by Congress. For
example, HEA, Section 420R provides mandatory appropriations for Iraq and Afghanistan
Service Grants (IASG).
Sometimes, however, the authorizing statute for an entitlement does not include language
providing authority to make the payment to fulfill the legal obligation that it creates. Under this
approach to mandatory spending, the budget authority is provided in appropriations measures.
Such spending is referred to as appropriated mandatory spending or an “appropriated
entitlement” and occurs through a two-step process. First, authorizing legislation becomes law
that sets program parameters (through eligibility requirements and benefit levels, for example),
then the appropriations process is used to provide the budget authority needed to finance the
commitment.
information about discretionary appropriations.
17 A point of order is an objection that the pending proposal or proceeding is in violation of House or Senate rules. For
further information with regard to these rules, see CRS Report R42098, Authorization of Appropriations: Procedural
and Legal Issues, pp. 4-8.
18 Entitlement payments are legal obligations of the federal government, and eligible beneficiaries may have legal
recourse if full payment under the law is not provided.
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As with mandatory spending, congressional
appropriations committees have limited
control over the amount of budget authority
provided for appropriated mandatory spending
because the amount needed is the result of
previously enacted commitments in law. In
other words, the authorizing statute for
appropriated mandatory spending establishes a
legal obligation to make payments (such as an
entitlement) and the funding in annual
appropriations acts is provided to fulfill that
legal financial obligation. Because the cost of
appropriated mandatory programs may vary
from year to year, the funding that is provided
through the annual appropriations process is
based on a projection of costs for the relevant
fiscal year.
Pell Grants
A Quasi-entitlement?
The Pell Grant program is sometimes referred to as a
“quasi-entitlement,” because the way that it functions in
practice is similar to appropriated mandatory spending.
That is to say, the Pell Grant program is
“appropriated,” but the funds it receives through the
annual appropriations process are considered to be
discretionary spending because there is no legal
obligation to provide them. However, Congress and
the President have not frequently exercised the option
to reduce award levels or cap the number of
recipients—which are variables that factor into the
calculation of how much funding the program requires
each year—and have generally provided the amount of
budget authority (through the annual appropriations
process or other means) necessary to fund the formula
in the authorizing statute.19
Most ED line items included in regular annual appropriations acts are discretionary. One
exception to this is the Vocational Rehabilitation State Grants program, which is appropriated
mandatory spending.20
302(a) and 302(b) Allocations
The concepts in this section relate to how Congress decides the amount of discretionary and
mandatory funding to appropriate each fiscal year, which ultimately impacts how much funding
ED is provided. Generally speaking, Congress does not start by estimating the cost of every ED
program and adding those amounts to reach a total. What happens instead (typically) is that the
House and the Senate agree on a total for all federal spending through a budget resolution.21 That
amount is then divided between appropriations and authorizing committees. The appropriations
committees then divide their portions among each of their subcommittees. Each subcommittee
then determines funding levels for the agencies within its jurisdiction. This is called the 302(a)
and 302(b) allocation process.
More specifically, the Congressional Budget and Impoundment Control Act of 1974 (CBA)22
requires that Congress adopt a concurrent resolution on the budget each fiscal year. This budget
resolution constitutes a procedural agreement between the House and the Senate that establishes
overall budgetary and fiscal policy to be carried out through subsequent legislation. The spending
elements of the agreement establish total new budget authority and outlay levels for each fiscal
year covered by the resolution. The agreement also allocates federal spending among 20
19 For further information about the Pell Grant program, see CRS Report R45418, Federal Pell Grant Program of the
Higher Education Act: Primer.
20 For more information, see CRS Report R43855, Rehabilitation Act: Vocational Rehabilitation State Grants.
21 In the absence of agreement on a budget resolution, Congress may employ alternative legislative tools to serve as a
substitute for a budget resolution. These substitutes are typically referred to as “deeming resolutions,” because they are
deemed to serve in place of an annual budget resolution for the purposes of establishing enforceable budget levels for
the upcoming fiscal year. For further information, see CRS Report R44296, Deeming Resolutions: Budget Enforcement
in the Absence of a Budget Resolution.
22 2 U.S.C. §621 et seq.
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functional categories (such as national defense; transportation; and education, training,
employment, and social services), setting budget authority and outlay levels for each function.
Within each chamber, the total new budget authority and outlays for each fiscal year are also
allocated among committees with jurisdiction over spending, thereby setting spending ceilings for
each committee. These ceilings are referred to as the 302(a) allocations.23 The 302(a) allocation
to each of the authorizing committees (such as the Senate Health, Education, Labor and Pensions
Committee) establishes spending ceilings on the mandatory spending under each committee’s
jurisdiction. The 302(a) allocations to the House and the Senate appropriations committees
include discretionary spending and also appropriated mandatory spending.
Once the appropriations committees receive their spending ceilings, they separately subdivide the
amount among their respective subcommittees, providing spending ceilings for each
subcommittee. These spending ceilings are referred to as 302(b) suballocations.24 For example,
for FY2019 the amount of the initial 302(a) allocation to the House Appropriations Committee
was $1.2 trillion for discretionary budget authority and $955 billion for appropriated mandatory
budget authority. The appropriations subcommittee that is responsible for funding ED is the
Labor, Health and Human Services, Education, and Related Agencies (LHHS) subcommittee.
When the committee apportioned that allocation among its 12 subcommittees, the initial
suballocation for the LHHS subcommittee was $177 billion for discretionary budget authority and
$783 billion for appropriated mandatory budget authority.25
The congressional allocations are of budget authority for the upcoming fiscal year. Budget
authority enacted in previous fiscal years that first becomes available for obligation in the
upcoming fiscal year counts against the congressional allocations for the upcoming fiscal year.
(This type of budget authority is referred to as “advance appropriations” and is discussed further
in the section ““Carry Forward,” Advance Appropriations, and Forward Funding.”)
Fiscal Year, Award Year, and Other Units of Time
Department of Education budget, appropriations, and program-related data may be reported using
a variety of different “years” or units of time. These units of time include the fiscal year, calendar
year, academic or school year, and the award year. Readers are cautioned to remain alert to the
unit of time when considering and comparing various funding levels reported for ED activities.
To be strictly comparable, the units of time must be the same.
When the federal government accounts for the funds it has budgeted, appropriated, or spent, the
unit of time it uses is the fiscal year (FY). The federal fiscal year is generally the 12-month period
between October 1 and the following September 30. The current year is the fiscal year that is in
progress; the prior year is the fiscal year immediately preceding the current year. Outyears are
any future fiscal years beyond the current year. The fiscal year is the standard unit of time used in
23 This refers to §302(a) of the CBA. Typically, these 302(a) allocations are provided in the joint explanatory statement
that accompanies the conference report on the budget resolution.
24 This refers to §302(b) of the CBA. These 302(b) suballocations are reported by the House and the Senate
appropriations committees.
25 The 302(a) allocation for the House Appropriations Committee was entered into the Congressional Record by the
House Budget Committee Chair pursuant to authority granted by Section 30104 of the Bipartisan Budget Act of 2018
(P.L. 115-123). See “Publication of Budgetary Material,” Congressional Record, daily edition, vol. 164, part 76 (May
10, 2018), p. H3926. The initial LHHS 302(b) suballocation for FY2019 is in H.Rept. 115-710.
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the congressional appropriations process; most funding levels in appropriations bills and
committee documents are reported by fiscal year.26
The federal fiscal year differs from the calendar year (January 1 to December 31), the typical
academic or school year (fall to spring),27 and the federal student aid award year (July 1 through
the following June 30). Annual funding levels reported in ED budget and program-related
documents may use one or more of these different units of time. For example, ED’s FY2019
congressional budget justification includes both fiscal year and award year funding levels for the
Pell Grant program. These funding levels are not strictly comparable.
“Carry Forward,” Advance Appropriations, and Forward Funding
Funding for federal programs that is provided in regular appropriations acts is usually available
for obligation at the start of the fiscal year and may only be obligated during that fiscal year
unless otherwise specified. Budget authority also may be provided for more than one fiscal year
(“multiyear”) or without fiscal year limitation (“no-year”). (See section on “Authorizations and
Appropriations.”) In other words, in some cases, budget authority may be obligated over multiple
fiscal years or may be available to be obligated indefinitely (until it is exhausted).
The concept of carry forward (or carry over) applies to budget authority that was enacted and
became available in a previous fiscal year and is still available for obligation in the next fiscal
year. (If a federal agency has not entirely obligated its multi- or no-year budget authority by the
end of the fiscal year, any unexpired multiyear budget authority and all remaining no-year budget
authority may continue to be available for obligation in the next fiscal year.) Such carry forward
budget authority is typically notated as “unobligated balances brought forward” in the OMB
Appendix to the annual budget. For example, the FY2019 OMB Appendix reports that budgetary
resources available to the Education for the Disadvantaged account in FY2017 included $660
million in unobligated balances brought forward (of $16.805 billion, total).
The concepts of advance appropriations and forward funding relate to when such funding first
becomes available to be obligated relative to the timing of its enactment and thus differ
significantly from carry forward. With advance appropriations and forward funding, the budget
authority becomes available for obligation at a point in time that is delayed beyond the start of the
fiscal year.
Advance appropriations become available for obligation starting at least one
fiscal year after the budget year.
Forward funding becomes available beginning late in the budget year and is
carried into at least one following fiscal year.
Federal accounts and programs may receive annual appropriations, advance appropriations,
forward funding, or a mixed approach. The most common mixed approach used in ED
appropriations combines advance appropriations and forward funding.
26 Funds may also be made available for more than one year (“multiyear” funds) or without fiscal year limitation (“no
year” funds). For further information on the appropriations process, see CRS Report R42388, The Congressional
Appropriations Process: An Introduction.
27 Schools and colleges follow their own separate fiscal years. A typical fiscal year for an elementary and secondary
school is July 1 to June 30. Fiscal years at institutions of higher education tend to vary.
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Figure 1 illustrates the period of availability for annual appropriations, forward funding, and
advance appropriations. It also includes an illustration of the default (or typical) period of
availability for annual appropriations.28
Figure 1. Start of Period of Availability
Annual Appropriations, Forward Funding, Advance Appropriations, and Mixed Approach;
Shown in FY2020 and FY2021, by Quarter
Source: Congressional Research Service (CRS).
Note: Q indicates fiscal quarter. The dark blue line represents the default period of availability for FY2020; the
striped dark blue line represents the default period for the following fiscal year (FY2021).
The period of availability for budget authority in ED’s accounts does not usually follow a single
rule. In a typical appropriations act, some ED accounts and programs will receive annual
appropriations (e.g., Indian Education), while others will receive appropriations under a mixed
approach including advance appropriations and forward funding (e.g., ESEA Title I). In general,
the advance appropriations-forward funding combination is used for accounts that provide funds
to recipients (such as elementary and secondary schools) who might experience service
disruptions if they received funds aligned with the federal fiscal year and not the academic or
school year. One advantage of this approach is that it allows schools to obligate funds prior to the
start of the school year. It also gives schools time to plan for, and adjust to, changes in federal
funding levels.
Budget Caps and Sequestration
The Budget Control Act of 2011 (BCA, P.L. 112-25) sought to reduce the federal budget deficit
through a variety of budgetary mechanisms, including the establishment of limits (or caps) on
discretionary spending and automatic spending reductions (known as sequestration) for both
discretionary and mandatory spending. The BCA only places limits on discretionary spending,
and the purpose and triggers for budgetary reductions through sequestration differ significantly
between discretionary and mandatory spending. In addition to describing how the BCA operates
28 For more information, see CRS Report R43482, Advance Appropriations, Forward Funding, and Advance Funding:
Concepts, Practice, and Budget Process Considerations.
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in light of these key distinctions, the following sections discuss the implications of the BCA for
ED.29
BCA-Related Budget Control Mechanisms
The BCA imposed statutory limits on discretionary spending for specified fiscal years. (The BCA established no
statutory limits on mandatory spending.) The BCA also established procedures to lower the discretionary limits
to achieve additional savings.
The BCA requires that sequestration—a largely across-the-board reduction of funding for nonexempt programs
and activities—occur under certain circumstances. These circumstances differ for discretionary and mandatory
spending.
Discretionary spending sequestration is to occur when the statutory limits on discretionary spending are
breached. The role of sequestration in this context is to reduce nonexempt spending subject to the limit so
that it no longer exceeds that limit.
Mandatory spending sequestration is to occur each fiscal year to achieve specified savings. Sequestration in
this context serves as a mechanism to impose across-the-board cuts to nonexempt mandatory spending. It is
not triggered by spending levels in those programs or other budgetary factors.
Discretionary Spending Limits
The BCA imposes separate limits on “defense” and “nondefense” discretionary spending each
fiscal year from FY2012 to FY2021. The defense category includes all discretionary spending
under budget function 050 (defense).30 The nondefense category includes discretionary spending
in all the other budget functions. In general, discretionary budget authority for ED is subject to
the nondefense limit.
If discretionary spending is enacted in excess of the statutory limits, enforcement primarily occurs
through sequestration, which is the automatic cancelation of budget authority through largely
across-the-board reductions of nonexempt programs and activities.31 The purpose of sequestration
is to reduce the level of spending subject to the discretionary spending limit so that it no longer
exceeds that limit. Any across-the-board reductions through sequestration affect only nonexempt
spending subject to the breached limit, and they are in the amount necessary to reduce spending
so that it complies with the limit.
Pursuant to procedures under the BCA, the discretionary spending limits initially established by
that act are to be further lowered each fiscal year to achieve certain additional budgetary
savings.32 The amount of the revised limits for the upcoming fiscal year is calculated by OMB
and reported with the President’s budget submission each year.33 The timing of this calculation,
29 For more information about the BCA, see CRS Report R42506, The Budget Control Act of 2011 as Amended:
Budgetary Effects; and CRS Report R44874, The Budget Control Act: Frequently Asked Questions.
30 For information on the budget functions, see CRS Report 98-280, Functional Categories of the Federal Budget.
31 Procedures for discretionary spending sequestration are provided in the Balanced Budget and Emergency Deficit
Control Act of 1985 (BBEDCA), Sections 251 and 256. Exempt programs and activities, including the Pell Grant
program, are listed in BBEDCA, Section 255.
32 The lowering of the limits was triggered when the BCA “joint committee” process did not result in the enactment of
legislation to achieve a targeted level of spending reductions. For information on this process, see CRS Report R41965,
The Budget Control Act of 2011.
33 The procedures through which these limits are reduced are in Section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 (BBEDCA). For a description of these procedures and how they were initially carried out
for the FY2014 reductions, see OMB Report to Congress on the Joint Committee Reductions for Fiscal Year 2014, pp.
11-16, https://obamawhitehouse.archives.gov/sites/default/files/omb/assets/legislative_reports/
fy14_preview_and_joint_committee_reductions_reports_05202013.pdf.
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which occurs many months prior to the beginning of the fiscal year, is intended to allow time for
congressional consideration of appropriations measures that comply with the revised limits. Since
the enactment of the BCA, however, a series of laws have been enacted that supersede the
spending limit level that otherwise would have been established by the OMB calculation. The
effect of these laws in most cases has been to increase the limits above what they otherwise
would have been. The most recent such law, which increased the spending limits for FY2018 and
FY2019, was the Bipartisan Budget Act of 2018 (BBA 2018, P.L. 115-123).34
Mandatory Spending Sequestration
In addition to the lowered discretionary spending limits, the BCA provides for reductions to
mandatory spending each fiscal year, which are also achieved through sequestration. (Some
mandatory spending is exempt from these automatic reductions.) However, mandatory spending
sequestration differs from discretionary spending sequestration in that it occurs automatically
each fiscal year, and is not triggered by spending levels or other budgetary factors. In other
words, mandatory spending sequestration in the BCA context is used as a means to automatically
reduce that type of spending each fiscal year on a largely across-the-board basis.
The amount of the reduction to defense and nondefense mandatory spending is calculated by
OMB and announced at the same time as the reductions to the statutory discretionary spending
limits each fiscal year (with the President’s budget submission). Nonexempt mandatory budget
authority at ED is subject to the nondefense reduction.
The BCA and ED Funding
The BCA affects funding levels at ED in several ways. In establishing caps on total federal
discretionary budget authority—caps which are the basis for the allocations of both total federal
spending and the division of that amount to each of the appropriations subcommittees through the
302(a) and 302(b) processes (discussed above)—the BCA can impact total discretionary funding
at ED. Further, if those caps are exceeded, ED’s discretionary budget authority may be subject to
sequestration. Since the BCA has been in effect, a discretionary spending sequestration has only
occurred once—in FY2013.35
For ED programs that receive nonexempt mandatory funding, the BCA requires an annual
sequester in an amount calculated by OMB. The dollar amount of the reduction for a particular
ED account is based on the percentage by which nonexempt mandatory spending in the
nondefense category needs to be cut to achieve the total required savings. For example, in
FY2018 mandatory funds in the Rehabilitation Services and Disability Research, Higher
Education, TEACH Grant Program, IASG, and Student Financial Assistance Debt Collection
34 For further information, see CRS Insight IN10861, Discretionary Spending Levels Under the Bipartisan Budget Act
of 2018.
35 For the FY2013 sequestration of nondefense discretionary spending, a total reduction of $25.798 billion or 5% of
such spending was required. The circumstances that triggered discretionary spending sequestration during FY2013
were somewhat different than the circumstances that could trigger sequestration in future fiscal years, but the basic
principles discussed in this paragraph as to how sequestration would be carried out continue to apply. For further
information with regard to the FY2013 sequestration, including the reductions to particular accounts, see OMB Report
to the Congress on the Joint Committee Sequestration for Fiscal Year 2013, March 1, 2013,
https://obamawhitehouse.archives.gov/sites/default/files/omb/assets/legislative_reports/fy13ombjcsequestrationreport.p
df.
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accounts were subject to the nondefense mandatory sequestration that was calculated based on a
reduction of 6.6%.36 For FY2019, this reduction is 6.2%.37
For both mandatory and discretionary spending sequestration, the dollar amount that is canceled
in each account differs depending on the amount of sequesterable budgetary resources in that
account. For example, for the FY2013 sequester, OMB calculated that nondefense discretionary
spending would need to be reduced by 5%. The English Language Learner account, which had
total sequesterable budgetary resources of $737 million, would thus be reduced by $37 million
(5% of $737 million). Likewise, Impact Aid had sequesterable budgetary resources of $1.299
billion and was reduced by $65 million (5% of $1.3 billion).
Some ED programs, such as the Pell Grant program, are exempt from sequestration or follow
special rules. For example, during periods when a sequestration order is in effect for mandatory
spending, the BCA directs that origination fees charged on federal student loans made under the
William D. Ford Federal Direct Loan program must be increased by the nondefense, mandatory
sequestration percentage.38 For more information, see CRS Report R42050, Budget
“Sequestration” and Selected Program Exemptions and Special Rules.
Readers are cautioned, when comparing or analyzing funding levels for ED accounts and
programs, to assess whether such funding levels reflect pre- or post-sequestration funding levels.
Administration and congressional budget and appropriations materials may use pre- or postsequestration amounts, or both.
Transfer and Reprogramming
Both authorization and appropriations measures may also provide transfer authority. Transfers
shift budget authority from one account or fund to another or allow agencies to make such shifts.
Agencies are prohibited from making transfers between accounts without statutory authority. For
example, in FY2019 the appropriations act that funded ED provided that up to 1% of any
discretionary budget authority appropriated to the department could be transferred between
accounts, subject to certain restrictions.39
Agencies may, however, generally shift budget authority from one activity or program to another
within an account without additional statutory authority. This is referred to as reprogramming.
For example, in FY2016 ED shifted $158,336 from the Strengthening Native American-serving
Nontribal Institutions program that would have otherwise lapsed to the Fund for the Improvement
of Postsecondary Education/First in the World (FIPSE/FITW) program using reprogramming
authority.40 The appropriations subcommittees have established notification and other oversight
procedures for various agencies to follow regarding reprogramming actions. Generally, these
procedures differ with each subcommittee. For instance, in FY2019 reprogramming requirements
36 Executive Office of the President, Office of Management and Budget, OMB Report to the Congress on the Joint
Committee Reductions for Fiscal Year 2018, May 23, 2017, https://www.whitehouse.gov/sites/whitehouse.gov/files/
omb/sequestration_reports/2018_jc_sequestration_report_may2017_potus.pdf.
37 Executive Office of the President, Office of Management and Budget, OMB Report to the Congress on the Joint
Committee Reductions for Fiscal Year 2019, February 12, 2018, https://www.whitehouse.gov/wp-content/uploads/
2018/02/Sequestration_Report_February_2018.pdf.
38 For more information, see CRS Report R40122, Federal Student Loans Made Under the Federal Family Education
Loan Program and the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers.
39 P.L. 115-245, Division B, Title III, §302.
40 See Department of Education, “Fiscal Year 2018 Justifications of Appropriations Estimates to the Congress: Volume
II,” p. R-38, https://www2.ed.gov/about/overview/budget/budget18/justifications/r-highered.pdf.
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applicable to ED were carried in the appropriations act that funded the department. Those
requirements included consultation with the House and the Senate appropriations committees, as
well as written notification, ahead of reprogramming actions that met certain criteria.41
Formula and Competitive Grants
The Department of Education uses one of two processes to distribute the funds it receives for
grant making. It may distribute such funds by mathematical formula—usually such formulas are
predetermined and established in statute—or through merit-based competitions.
ED’s Title I, Part A program, for example, is a formula grant program. It provides funding to local
educational agencies (through state educational agencies) using various mathematical formulas
that consider the number of school-age children in poverty, state average per-pupil expenditures,
and similar variables.42 The Innovative Approaches to Literacy program, on the other hand, is a
merit-based competitive grant program. Applicants must meet certain criteria (such as whether
they promote science, technology, engineering, and math education) and are awarded points
based on how well they meet those criteria. Applicants with the highest weighted scores receive
grants.43
Block and Categorical Grants
Policy debates about education funding sometimes focus on whether funds ought to be provided
through block grants or categorical grants.44 Block grants are general or multipurpose grants that,
in the federal education context, are typically awarded to states through a formula-based process.
Block grant funding may be used for a wide variety of purposes. Awardees (not federal officials)
determine how to use such funds within a broad set of options. For example, the Elementary and
Secondary Education Act, as amended by ESSA (P.L. 114-95), authorized a new block grant
program at ED called “Student Support and Academic Enrichment Grants.” Formula funding
provided through this block grant could serve a variety of purposes. Such purposes include
providing all students with access to a well-rounded education, improving school conditions for
student learning, and improving the use of technology in order to improve the academic
achievement and digital learning of all students.45
Categorical grants, on the other hand, are typically available for a more narrow and defined set of
purposes or program activities. They may be distributed by formula or competition. ED’s Carol
M. White Physical Education program, which provides funds to schools and community-based
organizations to initiate, expand, or enhance physical education programs, is an example of a
competitively awarded categorical grant. (ESSA incorporated this program into the Student
Support and Academic Enrichment block grant.)
41 P.L. 115-245, Division B, Title III, §5.
42 See CRS Report R44164, ESEA Title I-A Formulas: In Brief.
43 More information about the Innovative Approaches to Literacy Program is available at https://www2.ed.gov/
programs/innovapproaches-literacy/index.html.
44 For more information about block and categorical grants (in general), see CRS Report R40486, Block Grants:
Perspectives and Controversies.
45 CRS In Focus IF10333, The Every Student Succeeds Act (ESSA) and ESEA Reauthorization: Summary of Selected
Key Issues.
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Matching Funds or Requirements
Some federal grants include what are known as matching requirements. In such scenarios, federal
funds or assistance are granted to awardees who are willing and able to “match” federal funds
with a nonfederal contribution (such as funding from state government or private sources). This
nonfederal contribution is called the “nonfederal share.” Typically, matching fund requirements
specify that the nonfederal share must meet or exceed a certain percentage of the federal award
amount (such as 20% or 50%). Depending on the grant requirements, nonfederal matching
contributions may be in cash or what is known as “in-kind” (such as computer equipment or staff
time), or a combination of the two. For example, the maximum federal share of compensation in
the Federal Work-Study program (which provides funding to support part-time employment of
needy college and university students) is 75% (with certain exceptions). Institutions participating
in the Work-Study program are required to provide the remaining 25%.46
Frequently Asked Questions
The following section includes frequently asked questions about the budget and appropriations
process for ED (and closely related topics).
How much funding does the Department of Education receive
annually?
ED’s annual budget includes two types of spending: discretionary and mandatory. In FY2019, ED
received approximately $71 billion in budget authority through the annual discretionary
appropriations process.47 About three-quarters of these funds ($52 billion) were distributed to
local educational agencies to provide supplementary educational and related services for
disadvantaged and disabled children or to low-income postsecondary students (in the form of Pell
Grants, which provide financial assistance for college).48
ED also has programs that receive mandatory funding directly through their authorizing statutes.
These programs received about $2.5 billion in net funding in FY2019. However, most of ED’s
mandatory funding is for student loan subsidies. In some years, the net cost of student loan
subsidies is positive (i.e., there is a cost to the government for providing the subsidy); in other
years the net cost of student loan subsidies is negative (i.e., the government received fees and
other receipts in excess of subsidy costs).49 Because of this dynamic, ED’s “total” budget can
vary widely from year to year. (See Table 1.)
46 The required match in the Federal Work-Study program can be as high as one-half of the federal share or as low as
zero, depending on the type of employment. For more information, see CRS Report RL31618, Campus-Based Student
Financial Aid Programs Under the Higher Education Act.
47 This amount includes only funds appropriated to the department through the annual appropriations process.
48 For more information on these programs, see CRS Report RL31618, Campus-Based Student Financial Aid Programs
Under the Higher Education Act; and CRS Report R41833, The Individuals with Disabilities Education Act (IDEA),
Part B: Key Statutory and Regulatory Provisions.
49 The costs of student loan and other federal credit program subsidies are calculated in accordance with the Federal
Credit Reform Act of 1990 (FCRA). For a comparison of the FCRA accounting method and the alternative fair-value
method, see CRS Report R44193, Federal Credit Programs: Comparing Fair Value and the Federal Credit Reform Act
(FCRA).
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Table 1. Discretionary, Mandatory, and Total ED Appropriations: FY2015 to FY2019
(In thousands, rounded)
FY2015
FY2016
FY2017
FY2018
FY2019
Discretionary
67,135,576
68,306,763
68,239,156
70,867,406
71,448,416
Mandatory (net)
20,377,890
8,772,739
47,802,686
(692,311)
2,555,285
Total
87,513,466
77,079,502
116,041,842
70,175,095
74,003,701
Source: Mandatory spending levels for all years and discretionary spending levels for FY2015-FY2017 are from
U.S. Department of Education, Budget Tables, “President’s Budget Request,” FY2017-FY2019. Discretionary
spending levels for FY2018 and FY2019 are from U.S. Department of Education, Budget Tables, “FY2019
Congressional Action,” October 9, 2019, https://www2.ed.gov/about/overview/budget/budget19/19action.pdf.
Notes: Numbers in parentheses are negative numbers. Mandatory funding levels in Table 1 represent net cost
(including both gains and expenditures). Mandatory funding levels for FY2018 and FY2019 are estimates.
Discretionary funding for FY2019 is current as of the date of this report.
How much does the federal government spend on education?
In short, the answer depends on what federal accounts or activities are defined as “education
spending,” on the point in the fiscal year when budget authority is estimated, and which federal
agency is reporting. Any aggregation of federal funding provided for educational purposes across
agencies or accounts requires judgements about which activities should be counted (in whole or
in part) and about how such activities should be grouped (e.g., higher education, K-12, etc.).
Moreover, any such exercise may be limited by the granularity of information available about the
use of the funds. Complicating the situation is the fact that federal funding for education overlaps
with (but is not the same as) funding for ED.
The following sections explore and describe two commonly referenced ways that the federal
government accounts for the funds it spends on education: by Treasury Department function code
and as calculated and tracked in ED’s Digest of Education Statistics.
Function 500
The Treasury Department classifies all federal funding according to certain numbered functions
(e.g., Health (550) and Transportation (400)) and by numbered subfunctions (e.g., Health Care
Services (551) and Health Research and Training (552)). The Congressional Budget Office
(CBO), Office of Management and Budget (OMB), and congressional budget process also use
this same taxonomy.
Federal education funding is included in function 500 (Education, Training, Employment, and
Social Services). Within function 500, subfunction 501 includes elementary, secondary, and
vocational education; and subfunction 502 includes higher education. While these are two of the
primary areas in which federal education funding is concentrated, simply adding the totals for
these two subfunctions does not capture all federal funding for education. For example, other
subfunctions, such as 503 (research and general education aids) and 504 (training and
employment), could be considered federal education spending as well. Additionally, subfunction
506 (social services) includes ED’s Rehabilitation Services and Disability Research Account.
Furthermore, only a portion of total outlays for subfunctions 501 and 502 were spent by ED, and
not all ED funding is classified as function 500. For example, other agencies (such as the National
Science Foundation and National Institutes of Health) provide federal funds for educational
programs and activities that may be captured in the totals for subfunctions 501 and 502. In
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addition, some ED programs and activities are classified under other functional categories, such
as the Office for Civil Rights (subfunction 751, federal law enforcement activities).
Digest of Education Statistics
ED’s National Center for Education Statistics (NCES) tracks federal funding for education and
related activities in the periodically updated Digest of Education Statistics (Digest). Funding data
in Digest tables may represent appropriations or outlays. Major Digest federal education funding
tables present data on federal support for education broken down by program, agency, state,
education level, and other facets.50
As per Table 401.10, “Federal support and estimated federal tax expenditures for education, by
category,” the federal government provided $228.4 billion in direct budget authority (measured
primarily as outlays, but sometimes as obligations) for education (broadly defined to include
research grants to universities) in FY2017. If nonfederal funds generated by federal legislation are
included, the amount was $322.6 billion.
Where can information be found about the President’s budget
request and congressional appropriations for the Department of
Education?
The ED congressional budget justifications, which provide details about the President’s budget
request for the department, are published on the department’s website.51
Appropriations for many (but not all) ED accounts are typically included in annual Departments
of Labor, Health and Human Services, and Education, and Related Agencies appropriations acts.
The Congressional Research Service (CRS) tracks these acts—including related bills and
committee reports—each year.52
How much ED funding is in the congressional budget resolution?
As discussed in the “302(a) and 302(b) Allocations” section of this report, the budget resolution
sets procedural parameters for the consideration of mandatory and discretionary spending
legislation; those parameters are enforceable by points of order. The budget resolution does not
provide actual funding for ED or any other purpose.
While the procedural parameters in the budget resolution do involve underlying assumptions
about levels of funding for particular purposes, there are two general reasons why the amount of
funding assumed for ED (or education-related purposes) in the annual congressional budget
resolution cannot be determined by CRS. First, the procedural parameters in the budget resolution
allocate funding by congressional committee and not by department. Because the jurisdiction of
the relevant authorizing committees and appropriations subcommittees encompasses more than
ED, it is not possible to determine the assumed amount of funding for ED through those
allocations. Second, although the basis of those authorizing committee and appropriations
subcommittee allocations is a distribution of funding based on “functional categories,” those
functional categories do not neatly correspond to ED or education-related purposes. (Functional
categories are discussed in the section “How much does the federal government spend on
50 These tables may be found at http://nces.ed.gov/programs/digest/current_tables.asp.
51 Available at http://www2.ed.gov/about/overview/budget/index.html.
52 See the “Appropriations Status Table” on CRS.gov, http://www.crs.gov/AppropriationsStatusTable/Index.
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education?”) As a result, absent specific information with regard to the budget resolution from the
House or the Senate budget committees, it is not possible for CRS to determine amounts of
funding for ED or education-related purposes that are assumed by the budget resolution.
What is the difference between the amounts in appropriations bills
and report language?
The answer to this question centers on the force of law. Funding levels included in House and
Senate appropriations bills are proposed until enacted. That is to say, until an appropriations bill is
signed by the President (i.e., it is enacted), the funding levels included therein simply represent
what each appropriations committee or subcommittee—or if the bill has passed the House or the
Senate, that chamber—proposes to appropriate for the various programs and agencies included in
that bill. Once Congress and the President enact an appropriations measure, the funding levels
included in that act are statutorily established and provide a legal basis for agencies to obligate
and expend that funding. Appropriations acts, therefore, carry the force of law.
Funding levels and program directives included in House and Senate appropriations committee
reports are committee recommendations and are not usually legally binding. (In some cases,
report language is enacted by reference in the appropriations act that it accompanies, giving it
statutory effect.)53 However, while report language itself generally is not law, agencies usually
seek to comply with it because it represents congressional intent.
Typically, report language is used to supplement legislative text at either of two stages in the
congressional appropriations process. First, as noted, reports may accompany annual
appropriations bills reported by the House or the Senate appropriations committees. If these
committee reports differ with respect to a particular funding level or program directive (e.g., the
House Appropriations Committee report recommends setting the maximum discretionary portion
of Pell Grants at $5,035 and the Senate report recommends setting it at $5,135), a joint
explanatory statement (JES) may be used to reconcile conflicting language and also provide
additional instructions. (The JES is sometimes referred to colloquially as a conference report,
though from a technical standpoint, it is not. The JES accompanies the conference report, which
contains only legislative text.)54
For appropriations measures that are not reported from an appropriations committee but still
receive congressional consideration—or when differences are resolved through an amendment
exchange and not a conference committee process—an explanatory statement from an
appropriations committee is sometimes entered into the Congressional Record. This language
may be regarded similarly to report language. When this text is used during the resolving
differences phase of the legislative process, such statements can serve the same purposes and
function as a JES.
53 For further information about appropriations report language, see CRS Report R44124, Appropriations Report
Language: Overview of Development, Components, and Issues for Congress.
54 A conference report contains the formal legislative language on which the conference committee has agreed. A JES
explains the various elements of the conferees’ agreement. For further information, see CRS Report 98-382,
Conference Reports and Joint Explanatory Statements.
Congressional Research Service
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Department of Education Funding: Key Concepts and FAQ
What happens to education funding if annual appropriations are
not enacted before the start of the federal fiscal year?
It depends. First, Congress and the President may provide partial-year funding through a
temporary appropriations law, often referred to as a “continuing resolution” (CR), while they
negotiate agreement on annual appropriations that have yet to be enacted. CRs typically (but not
always) provide appropriations at a rate based on the previous fiscal year’s appropriations acts
and for the same purposes as those provided in the previous fiscal year. (Adjustments in funding
levels or allowable activities must be specified in the CR.) The typical effect, then, of providing
federal education funding through a continuing resolution is that planned or proposed changes to
federal education programs may not occur or may be delayed.55 In addition, while a CR is in
effect, ED makes limited obligations until budget authority for the entire fiscal year is enacted.
If appropriations actually lapse, the effects of that lapse—including whether a shutdown of
agency operations commences—will depend on a variety of factors. Several factors that might
mitigate the effects of a lapse include
the extent to which unexpired budget authority is available for ED to obligate
during the period of the lapse (generally, such funding would be multiyear or noyear budget authority enacted in prior fiscal years, including as forward funds or
advance appropriations);
the extent to which ED staff who would regularly administer programs or funds
are furloughed as a consequence of the lapse;
the timing of the grant cycle for individual grant programs and the type of funds
that are typically awarded and distributed; and
the availability of alternative sources of funding that can be used (temporarily or
on an ongoing basis) to sustain supported activities.56
What happens if an ED program authorization “expires”?
As discussed in the sections titled “Authorizations and Appropriations” and “Authorization of
Appropriations” most of ED’s enabling or organic program authorizations are permanent.
Therefore, unless the program’s enabling authorization specifically includes a sunset provision, or
Congress and the President enact legislation repealing the enabling authorization, the program
can continue so long as Congress continues to fund it through the appropriations process.
This remains true, in general (but not always), even if the program’s authorization of
appropriations has expired and the GEPA extension has lapsed. (See text box titled, “GEPA and
Appropriations Authorizations at ED.”) This is because an authorization of appropriations is a
directive from Congress to itself and does not typically function as a sunset provision for the
program or purpose to which it relates. An expired authorization of appropriations may, however,
lead to a point of order during floor consideration against an appropriations measure or
amendment under certain circumstances. They are, therefore, significant from the perspective of
congressional procedure.
55 For further information on CRs, see CRS Report R42647, Continuing Resolutions: Overview of Components and
Recent Practices.
56 For further information on funding lapses and government shutdowns, including a discussion of some of the factors
listed in this report, see CRS Report RL34680, Shutdown of the Federal Government: Causes, Processes, and Effects.
Congressional Research Service
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Department of Education Funding: Key Concepts and FAQ
For More Information
Readers seeking additional information on any of the key terms, concepts, and answers to the
FAQs included in this report are referred to the authors of this report and to CRS reports on
budget and appropriations in general and on education funding in particular. Such reports have
been footnoted and linked in the relevant sections of this report.
Additionally, readers may wish to consult glossary and budget concepts documents produced by
ED, the Congressional Budget Office (CBO), Government Accountability Office (GAO), and
Office of Management and Budget (OMB). These include the following:
Department of Education, Budget Process in the U.S. Department of Education,
last modified January 19, 2017, http://www2.ed.gov/about/overview/budget/
process.html;
Congressional Budget Office, Glossary, updated July 2016, https://www.cbo.gov/
publication/42904;
U.S. Government Accountability Office, A Glossary of Terms Used in the
Federal Budget Progress, GAO-05-734SP, September 1, 2005,
http://www.gao.gov/products/GAO-05-734SP; and
Executive Office of the President, Office of Management and Budget, “Budget
Concepts,” Fiscal Year 2019 Analytical Perspectives of the U.S. Government,
https://www.govinfo.gov/content/pkg/BUDGET-2019-PER/pdf/BUDGET-2019PER-5-1.pdf.
Author Contact Information
Kyle D. Shohfi
Analyst in Education Policy
/redacted/@crs.loc.gov
, 7-....
Jessica Tollestrup
Specialist in Social Policy
/redacted/@crs.loc.gov , 7-....
Acknowledgments
Heather Gonzalez, CRS Specialist in Social Policy, co-authored an earlier version of this report.
Congressional Research Service
R44477 · VERSION 5 · UPDATED
20
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